www.iva.co.uk

Im with Clearstart and been paying my IVA for about 6 months.
All has been good, eg its being paid and the first deduction on pay day !
Could someone out there clarify a little about the annual review and the no variation for 24 months ?
I have written to Clearstart for just clarification as this is all still new and havent experienced the procedure yet.
I basically pay £350 per month and the agreement is for 60 months.
Each year they review my income and expenditure.
So I obviously fill that out with all my costs and salary.
Obviously costs rise, salaries rise and fall, which is to make sure I can still afford the £350 per month.
What I dont get is that there is no variation for 24 months, so what exactly does that mean ?
Do the creditors meet/vote upon the reviews ?
As it states £350 per month for 60 months, can it change and the IVA not binding as a contract ?
Maybe I'm stupid, but its clear to me
Thanks
Brian

Hi Brian,

You've pretty much got it and this is what I understand of the situation.

From what I understand the No Variation Clause is put in so that you/your IP cannot call a meeting with your creditors varying the terms of your iva. This is different to your annual review.

Genrally at your annual review, you willl be asked to submit your I&E form (revised if necessarry) together with payslips, possibly bank statements and supporting documnetation if required. This is done by your IP and does not involve your creditors. Your IP will review your circumstances and generally dependent on that determines whether or not you increase your contributions.

You and your creditors are bound under the terms of the IVA however the monthly contribution stated on your proposal is generally the minimum monthly contribution that you are repaying and this is usbject to change (ie increase) over the years IF you can afford it.

Hope that makes sense and congratulations for making it to the first 6 months!

Very good clarification Louisa...I am a novice to this subject and I understand you perfectly! Any questions is going to you

The "no variation" rule is unenforceable and if I came across it and one of my clients needed a variation in this period, I would not hesitate to put a suitable report in front of creditors.

I wish you'd been my IP Melanie! I had that modification and my IP refused point blank to put a variation forward. At the time I was too upset and tired so I didn't argue.